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December 18, 2017

Higher annual limit on Haiti duty-free apparel

America's International Trade Administration has increased the annual limit on duty-free apparel from Haiti for a 12-month period.

America’s International Trade Administration has increased the annual limit on duty-free apparel from Haiti for a 12-month period.

Under the Haitian Hemispheric Opportunity Through Partnership for Encouragement (HOPE) Act, 361,603,399 square metres equivalent of apparel articles assembled in Haiti will be eligible for preferential treatment from 20 December 2017 through to 19 December 2018.

Apparel articles entered in excess of this amount, which is 7.3% higher than the previous year, will be subject to otherwise applicable tariffs, according to the US Department of Commerce.

HOPE provides for duty-free treatment for certain apparel articles imported directly from Haiti. To qualify for such treatment apparel articles must be wholly assembled or knit-to-shape in Haiti from any combination of fabrics, fabric components, components knit-to-shape, and yarns.

However, the sum of the cost or value of materials produced in Haiti or one or more countries described in HOPE, or any combination thereof, plus the direct costs of processing operations performed in Haiti or one or more specified countries, or any combination thereof, may not be less than an applicable percentage of the declared customs value of such apparel articles: 60%, for the period 20 December 2017 to 19 December 2018.

The limitation has been implemented under the Caribbean Basin Economic Recovery Act (CBERA), as amended by the HOPE Act.

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